Here are the Simple Factors That Could Pull Bitcoin Towards Its 2020 Highs

  • Bitcoin is showing tempered signs of strength at the present moment as its price pushes up towards $11,800
  • The cryptocurrency has been seeing slight weakness in recent days, making this latest upswing a welcome development for bulls
  • BTC has yet to break its prolonged consolidation phase between the lower-$11,000 region and $12,000
  • Some factors suggest a break of this range is imminent in the near-term
  • One analyst is pointing to stock market strength and weakness in the US Dollar as a couple of these factors to consider

Bitcoin and the aggregated crypto market have pushed slightly higher today, with most digital assets still trading mostly flat as BTC approaches its key near-term resistance at $12,000.

How it reacts to this resistance should offer significant insights into its near-term trend, as a rejection here would be a significant sign of weakness.

Analysts are noting that there are multiple factors currently counting in the benchmark cryptocurrency’s favor.

Some of these factors include a strong weekly close, strength in the stock market and gold, as well as weakness in the US Dollar.

The confluence of these factors may help lead Bitcoin higher in the days and weeks ahead.

Bitcoin Posts Strong Weekly Close as Technical Outlook Grows Strong

At the time of writing, Bitcoin is trading up just over 1% at its current price of $11,785. This is around where it has been trading throughout the past few weeks.

It does, however, mark an upswing from its recent lows of $11,400 that were set just a couple of days ago.

Analysts believe that the crypto may soon be guided higher by technical strength resulting from a strong weekly close that it was able to post. As one analyst noted:

“Happy with this weekly close – prior resistance that held for multiple years. Now holding as support so far. If the daily can stay above $10,500 and weekly about $11,500 – should be a continuation to upside if so.”

 

These Fundamental Factors Could Boost BTC as Well 

Some non-technical factors may also be working in Bitcoin’s favor. One analyst pointed to rising gold prices, stock market momentum, and a faltering dollar as a few things that may boost BTC.

“SPX showing major strength along with gold and silver, dollar showing weakness. I think btc will at least head for 12.1k area. Just closed my short, staying flat ~ looking to re-enter higher if I like what I see / buy dips if we reclaim 12.2k.”

Whether these fundamental factors will be enough to send Bitcoin flying past $12,000 remains to be seen.

Source: Bitcoininst

5 reasons why Bitcoin is ‘at the beginning of a bull run’

Bitcoin is “at the beginning” of an extended bull run, and there are increasingly clear reasons to accept it.

That is the opinion of Dan Held, head of growth at United States cryptocurrency exchange Kraken, who listed the latest evidence for bullish Bitcoin (BTC) on Aug. 24.

Many commentators have argued that Bitcoin is just getting started when it comes to price rises. For Held, the contributing factors are both Bitcoin-specific and macro-related.

In-profit UTXOs near 98%

Over 97% of Bitcoin unspent transaction outputs (UTXOs) — or parts of a transaction that involve coins returned to the initiator — are in profit.

As Cointelegraph reported, this means that less than 3% of transactions occurred at a higher price than the recent high of $12,400. Typically, this occurs at the start of bullish periods.

Put another way, almost 98% of all BTC is now worth more than when someone received it, meaning that long-term investors are better off than almost any time in the history of Bitcoin.

Bitcoin has now stayed above $10,000 for the second-longest period in its lifespan, tied with July 2019.

Bitcoin price periods about $10,000

Bitcoin price periods about $10,000. Source: Twitter

Supply dormancy spells HODL

Meanwhile, as noted by CasaHODL co-founder Jameson Lopp, one-year active supply has reached its lowest since the early days in 2011.

“Folks don’t want to part with their bitcoin,” he summarized.

Bitcoin current supply velocity and active supply velocity chart

Bitcoin current supply velocity and active supply velocity chart. Source: Coin Metrics/Twitter

Held referred to 61% of the total BTC supply remaining stationary for over a year, something that Cointelegraph previously identified as a bullish signal — investors are choosing to hold and not to trade or sell.

Exchange balances likewise hitting lows contributes to the theory.

A timely halving

The above factors occurring in the months after Bitcoin’s third block subsidy halving bolster the bullish argument.

Miners have recovered from the loss of revenue, while demand has remained conspicuous, especially from corporate and institutional buyers.

At the same time, Bitcoin’s inflation rate has dipped as a result of the halving, making repeated large-scale buy-ins an increasingly expensive business.

The inflation continues

When MicroStrategy made Bitcoin its new treasury reserve currency, its CEO, Michael Saylor, highlighted monetary policy as a major concern that pushed him away from fiat currency.

Held agreed, frequently pointing out the…

Continue reading at COINTELEGRAPH.com

 

 

Report finds $50 billion of cryptocurrency moved out of China hinting at capital flight against Beijing rules

Over $50 billion of cryptocurrency moved from China-based digital wallets to other parts of the world in the last year, pointing to possibilities that Chinese investors are transferring more money than allowed out of the country, a new report claims.

Chinese citizens are only allowed to buy up to $50,000 of foreign currency a year at a financial institution. In the past, wealthy citizens have circumvented the limit through foreign investments in real estate and other assets. But the government has cracked down on these methods, according to a report by Chainalysis, a blockchain forensics firm.

“Cryptocurrency could be picking up some of the slack though,” the report said.

“Over the last twelve months, with China’s economy suffering due to trade wars and devaluation of the yuan at different points, we’ve seen over $50 billion worth of cryptocurrency move from China-based addresses to overseas addresses,” Chainalysis said.

Chainalysis sells compliance and investigation software to businesses and governments.

“Obviously, not all of this is capital flight, but we can think of $50 billion as the absolute ceiling for capital flight via cryptocurrency from East Asia to other regions,” the report added.

Cryptocurrency holders are using controversial stablecoin Tether to move their money. A stablecoin is a digital currency that is usually backed by another asset or group of assets in efforts to stabilize its value and limit volatility. Tether claims to be pegged to the U.S. dollar.

Stablecoins are useful for transferring large amounts of cryptocurrency because, in theory, the value of the cryptocurrency a person is moving should not see wild swings.

“In total, over $18 billion worth of Tether has moved from East Asia addresses to those based in other regions over the last 12 months. Again, it’s highly unlikely that all of this is capital flight,” Chainalysis said in its report.

Part of this activity can be explained by China-based miners converting their newly-minted coins into Tether and sending them to exchanges abroad, Chainalysis said. Miners are people with specialized computers solving complex math problems to mint new cryptocurrency. When they solve this complex problem, miners are rewarded in cryptocurrency.

But the report also found significant spikes in Tether movement on certain news events. Firstly, in October, Chinese…

Continue reading at CNBC.COM

 

 

Recovery? Bitcoin Steps Back After $1000 Crush In 2-Days

Bitcoin has further declined to $11,750, while most of the larger-cap altcoins continue to bleed out with Ethereum close to testing $400. Lower-cap alts chart some notable performances in both directions.

Bitcoin Dips To $11,750

The primary cryptocurrency attracted the community’s attention a few days ago when it reached a new yearly high of over $12,450. Despite a slight retrace, the move seemed solid as Bitcoin stood above $12,000 for a longer period for the first time this year.

However, it was not to be as the bears came out swinging and took the asset down to $11,560 on Binance. BTC recovered some of its value and is currently trading at about $11,750.

BTCUSD 5m. Source: TradingView
BTCUSD 5m. Source: TradingView

It may not come as a surprise anymore as gold couldn’t maintain its recent price pump similarly to Bitcoin. The precious metal exceeded $2,000 per ounce a few days ago but headed south to $1,920 before recovering to $1,940. As such, the two asset classes double-down on their identical performances as of late.

The most prominent Wall Street stock market indexes also closed yesterday’s trading session slightly in the red. The Dow Jones dropped by 0.3%, Nasdaq by 0.15%, and the S&P 500, which painted a new all-time high earlier this week, declined by 0.44%.

Altcoins Fluctuate

Most of the altcoins, and especially the larger-cap ones, continue to lose value today. Ethereum is down by another 1% and is close to the psychological level of $400. Just a few days ago, ETH reached its yearly high of $445, meaning a 9% drop since then.

Ripple is down by 1.5% to $0.287, Bitcoin Cash (-2%) to $290, Litecoin (-1%) to $62, BitcoinSV (-1.7%) to $205, Cardano (-3%) to $0.128, and Binance Coin (-1%) to $22 are all in the red from the top 10. The only exception comes from Chainlink, which gains over 5% and trades above $16.

More substantial losses are evident from Balancer (-20%), Terra (-11%), Flexacoin (-10%), Compound (-5.5%), and Aragon (-5%).

Cryptocurrency Market Overview. Source: coin360.com
Cryptocurrency Market Overview. Source: coin360.com

On the other hand, OMG is the most impressive gainer from the top 100, with a 36% price pump to $3.75. According to data from the analytics company Santiment, OMG Network is “enjoying the largest long-term social spike since April 2018.”

OMG Network Social Media Performance. Source: Santiment
OMG Network Social Media Performance. Source: Santiment

Utrust, with its 17% pump, has entered the top 100 coins. Algorand is also surging by 15% following its layer-1 network update announced yesterday.

Qtum (12%), Ocean Protocol (9%), Synthetix Network (8%), and Yearn.Finance (8%) are also increasing in value. Interestingly, despite created to have no financial value, YFI trades at $11,700 as of writing these lines.

The post Recovery? Bitcoin Steps Back After $1000 Crush In 2-Days appeared first on CryptoPotato.

Source: Crypto Potato

Altcoins

Bitcoin Whale Says Traders Should Track These 2 Altcoins in Addition to BTC

An outspoken Bitcoin whale who rarely shows affection for anything other than BTC says two crypto assets have potential.

The pseudonymous trader known as Joe007 says UNUS SED LEO (LEO) may be a solid pick for investors looking to diversify their crypto portfolio.

“In a sane world, extremely low correlation by LEO would make it a desirable diversification instrument when it comes to constructing crypto portfolios. But of course, crypto traders are too busy chasing the latest shitcoin-du-jour pump to even take a notice.”

Source: Twitter

LEO is an ERC20 utility token that operates on the Ethereum and EOS blockchains. LEO holders enjoy multiple benefits on the crypto exchange Bitfinex including taker fee reduction, lending fee reduction, and discounts on crypto and fiat deposits and withdrawals.

Joe, who is known for placing large bets on the crypto exchange Bitfinex, says another coin on his list is Binance Coin (BNB). The trader says the token offers a use case that sets it apart from other crypto assets.

Binance Coin is a utility token issued by crypto exchange Binance. BNB holders get discounts when using the coin to pay for trading fees on Binance and Binance DEX. Holders can also use BNB to pay for goods and services to select merchants.

Because demand for both BNB and LEO is…

Continue reading at DAILYHODL.com

 

 

 

Bitcoin Plunges As The Crypto Market Loses $10B In Hours

There’s never a boring day in the cryptocurrency field and things tend to change in the blink of an eye.

Just earlier today, the total market capitalization was sitting comfortably at a 14-month high, and it took less than a few minutes for upwards of $10 billion to be wiped off its sheet. This happened as Bitcoin and other cryptocurrencies took a sudden dive.

Bitcoin Dives Below $12,000

In two violent red candles, the primary cryptocurrency lost about 3.6% of its value as it plunged to a low of around $11,800 on Binance.

Bitcoin was trading comfortably well above $12,000 earlier today after surging to almost $12,500 yesterday. Even though it recovered after touching $11,800 moments ago and is currently trading at around $11,940, BTC is still down about 1.5% over the past 24 hours.

btcusd_chart
BTC/USD. Source: TradingView

As CryptoPotato reported earlier today, BTC showed signs of slowing down after its latest rally. It’s worth noting that this is to be expected, given the sudden nature of its previous increases. The positive trend is still in play.

With this move, Bitcoin dragged the entire market down as the capitalization lost about $10 billion of its Dollar value. This comes just as the total market had increased to a point not seen in the past 14 months.

Altcoins Suffer as Well

As it’s almost always the case, Bitcoin’s sharp decline also had an impact on altcoins trading against the USD.

Nearly the entire market is in the red right now, with average losses spanning between 1.5 and 3%.

crypto_heat_map
Cryptocurrency Heat Map. Source: Coin360.com

However, the cryptocurrency that lost the most is Chainlink. Its price has been bleeding heavily throughout the entire day and even though it managed to recoup some of the losses in the last few hours, it remains down around 14% for the day.

The post Bitcoin Plunges Below $12,000 As The Crypto Market Loses $10B In Hours appeared first on CryptoPotato.

Source: Crypto Potato

Bitcoin Sets New 2020 High

Bitcoin has responded to the rising altcoins and just pumped to a new yearly high of over $12,400. By doing this, the primary cryptocurrency has increased its dominance over the market after reaching a new yearly low earlier today.

Bitcoin To $12,400 and Beyond?

As CryptoPotato reported earlier, Bitcoin stood still at $11,800, while many low-cap alts were surging. Thus, BTC’s dominance dropped to its lowest point in over a year at 58.4%. Just a few hours ago, however, the first-ever cryptocurrency decided to act.

BTC first broke above the psychological level of $12,000 and then the previous 2020 high of $12,100. Unlike the last time when the price move was quickly rejected, this time, Bitcoin kept its momentum and painted a new yearly high of $12,460 (on Bitstamp). As of writing these lines, BTC’s has retraced slightly to about $12,350.

btc_usd_chart_binance
BTC/USD. Source: TradingView

If BTC manages to overcome the $12,400 resistance decisively, it will have to face $12,800 as the next obstacle towards $13,000.

Bitcoin’s price pump today coincided again with a similar move from gold. The precious metal, which has displayed an increased correlation with BTC as of late, traded at about $1,950 per ounce for a few consecutive days before increasing its value with a sharp move today to $1,990.

Altcoins Bleed Against BTC

With its move upwards, Bitcoin has left most of the altcoins hanging behind. While they were surging lately, most alternative coins are now in the red against the primary cryptocurrency despite marking some impressive gains against the dollar.

Ethereum is down by 2.5% against BTC, Chainlink by 4.5%, EOS and Tezos by about 6%, and Binance Coin loses 4% of its value compared to Bitcoin.

The most substantial losers against BTC are Swipe (-20%), Quant (-16%), Blockstack (-12%), Algorand (-11%), Kava (-11%), and Compound (-10%).

Altcoins Vs. Bitcoin. Source: coin360.com
Altcoins Vs. Bitcoin. Source: coin360.com

Nevertheless, some altcoins are in the green, including Ocean Protocol (22%), OMG Network (10%), and Flexacoin (10%). Interestingly, Yearn.Finance, an asset intended to have no financial value by its creator, reached a new all-time high earlier today against the dollar.

YFI/USDT exceeded $9,100 on Binance just a few hours ago and has retraced slightly to about $8,000.

Ultimately, though, Bitcoin’s price pump has increased its market dominance, despite those increases from some alts. The metric comparing BTC’s total market cap with all other alternative coins has now grown to 59.1%.

The post Bitcoin Crushing Altcoins as BTC Price Sets New 2020 High appeared first on CryptoPotato.

Source: Crypto Potato

Ethereum (ETH) Surges 10% in 24 hours

Ehereum (ETH) crossed $400 today jumping more than 10% in 24 hours, briefly hitting $429. The last time Ethereum was above $400 was a week ago, on August 6, when it reached a high of $403.49.

Screen Shot 2020 08 13 at 4.17.26 PM

During the same 24-hour period, BTC was up 1.60% and LINK was up 7.32%.

ETH’s trading volume increased from $12,408,772,745 on August 12, when it was at $391.02, to $17,784,047,349, when it was at $429.84 USD— a 10.43% increase in 24 hours. ETH has been on a tear in part because of the explosion in interest and use of DeFi, a mostly Ethereum-based trend. The last time ETH was above $429 was August 1, 2018.

The world has been gripped by DeFimania lately—especially today, with the…

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Bitcoin Is Suddenly Behaving ‘Like A Tech Stock’

Technology stocks, including iPhone-maker Apple AAPL +1.9%, search giant Google GOOGL +0.7%, online retail behemoth Amazon AMZN +0.2% and social network Facebook, have surged during the coronavirus pandemic.

Bitcoin, up 60% year-to-date, has (so far) outperformed them all—even beating Amazon’s massive 2020 stock price rally and dwarfing the Nasdaq’s NDAQ -0.1% 22% increase.

Now, London-based digital asset management firm CoinShares has recommended investors allocate 4% of their portfolios to bitcoin—arguing “bitcoin, in its growth phase, behaves like a tech stock.”

“Having started its life at a price of zero, it’s no surprise that bitcoin’s investment performance, like that of successful start-ups, has been stellar,” CoinShares’ research strategist James Butterfill wrote in a report out this week.

“As a disruptive technology, bitcoin’s risk profile is rather similar to that of a technology stock: if it reaches its potential, the value could be immense, but at the same time, there is a chance it fails entirely, leaving the value of bitcoins close to zero.”

Bitcoin, created in 2009, has seen its value rise rapidly over the last decade—surging from mere pennies per bitcoin early in the last decade to over $11,000 now.

Meanwhile, tech stocks such as Facebook, Apple, Google and Amazon have soared in recent months, pushed on by coronavirus-induced lockdowns that have accelerated a trend toward digital services and remote working.

The CoinShares report concludes: “[Bitcoin] is beginning to mature into a store of value, although this is not how it has behaved in the past,” and advises investors, “a bitcoin portfolio weight of just under 4% is optimal in a traditional 60/40 portfolio.”

The report chimes with recent research suggesting institutional investors on Wall Street are increasingly moving into the bitcoin and cryptocurrency market. There’s also been interest in bitcoin from high-profile stock market day traders casting around for exciting alternatives to equity.

Elsewhere, bitcoin’s reputation as “digital gold” got a boost earlier this year when legendary macro investor Paul Tudor Jones revealed he was buying bitcoin as a hedge against the inflation he sees coming as a result of coronavirus crisis-induced Federal Reserve and central bank money-printing.

“We are already seeing an increase in bitcoin’s correlation to inflation and gold, also a store of value,” Butterfill said via email, adding that, over the last month, there’s been a “divergence in performance between tech stocks and bitcoin.”

“We expect that some investors will always treat [bitcoin] as a tech stock given its links with tech though, but the transition is happening as we speak.”

Butterfill warned that bitcoin investment is still seen as a…

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Software firm MicroStrategy makes a massive bet on Bitcoin

MicroStrategy, a Virginia-based business intelligence software company that trades on the NASDAQ, announced on Tuesday it has acquired 21,454 Bitcoin in what describes as a “capital allocation strategy.”

The move is a novel one for a publicly traded firm. While many companies put surplus capital into bonds and other investments as part of their treasury management strategies, a bet of this size on Bitcoin is all but unheard of.

“[I]nvesting in the cryptocurrency would provide not only a reasonable hedge against inflation, but also the prospect of earning a higher return than other investments,” said the company in a statement.

MicroStrategy, which was founded in 1989, has a market cap of around $1.2 billion, and posted a profit of $34 million in 2019. Its clients reportedly include big retailers like Pepsi and Adidas, while IBM and Oracle are among its competitors.

MicroStrategy’s decision to plow $250 million into Bitcoin may amount to more than a capital allocation strategy. Barry Silbert, the founder of crypto conglomerate DCG, noted on Twitter that the move could serve to tie MicroStrategy’s valuation to Bitcoin.

If investors equate MicroStrategy’s valuation with Bitcoin’s performance, it would not be the only company in this position. The online retailer Overstock is also heavily invested in crypto, a strategy that may have buoyed its share price even as its core business slumps.

The strategy could pay off if Bitcoin prices, which have rallied in recent months, continue to rise. After slumping for most of 2019, the cryptocurrency has risen to around $12,000 in August.

Many crypto boosters believe the price increase is tied to…

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